NOW IN ITS TWELFTH ANNUAL EDITION
TECH & OPS TRENDS IN WEALTH MANAGEMENT 2024
SIGNIFICANT MILESTONES DEFINED BY LEADING INDUSTRY EXPERTS
ALPHA FMC FOREWORD
Alpha FMC are delighted to be sponsoring the 12th Technology & Operations Trends Report for Wealth Management. The way this report has been created - combining multiple data points with expert opinions from numerous renowned institutions and individuals - is close to our hearts at Alpha FMC; our business has been built by combining data, industry knowledge and conviction to make the tricky decisions required at every turn in both strategy and execution, on behalf of our clients.
Transformation in Financial Services is as old as the industry itself. There is rarely a year without new products, new services, new regulations and new technology emerging. The changes that happen in one dimension not only come with their own challenges but with knock-on effects on others, triggering ongoing cycles. There are four themes highlighted by this report that we believe will shape the operating and economic models of Private Banks and Wealth Managers for cycles to come.
Technology should no longer – and can no longer – be seen as a series of trade-offs between revenue generation and cost savings, differentiation and efficiency, or customisation and industrialisation. Effective technology selection and adoption will enable industry leaders to avoid these trade-offs and hit business case expectations by lining up appropriate applications along the value chain. The emergence of “low-code/ no-code” front office applications and outsourced booking/ position keeping will offer the economies of scale the industry has missed to date. Execution is a key to success. That may sound simple, but our industry still struggles to mobilise and execute programmes as their business cases suggest. There are two critical stages:
• In the project lifecycle: Integration can still be painful but should no longer be a hurdle. Application Programming Interfaces (APIs) have been around for some time and practices have evolved; data model abstraction and standardised exchange protocols should be the norm. Indeed, this has become a differentiator for leading suppliers.
• Post-integration: The cost of evolution is regularly overlooked and not assessed equally with the cost of implementation. For every function, firms should be assessing the need and organisational model to enable ongoing and future change, and understanding the dependencies and associated costs.
Artificial Intelligence is now being explored by most to understand the risks and benefits, while firms grapple with the importance of – and implication of - under-investment in data management. Data definition and ownership must be established as the foundation for anything smarter. While there is no real shortcut, new solutions can help. For example, AI-powered “robots” now screen full data models to build registries of stored information, identify redundancies across tables, and compare data models to suggest the appropriate mapping. AI will move fast and we expect to see major impact within a decade– there is no time to lose.
Outsourcing remains an important lever to reshape business models but the trend has shown that no one size fits all. Many have learned too late that outsourcing should not just be seen through the lens of cost saving, and building your business case on this premise can lead to disaster. Dimensions other than cost must be assessed such as innovation, growth, stability, performance, quality and scalability. Nor does it help all functions equally; every function required by a private bank or wealth manager to operate needs to be looked at carefully to plot the path between removal of commodity distractions, management of risk and preservation of value – even in Operations.
This report highlights the multiple challenges that the wealth industry must manage and account for, but also the many opportunities that are being created as the industry continues to evolve and change. In years gone by, technology and operational change may have been a choice; powerful forces shaping the environment we are entering – customer opinion, market economics, regulation – now make it a necessity. But unlike in past years, firms should feel they can navigate the trade-offs and pitfalls more ably. There is support to help with all of these points and track records of successful change. Selecting the right partner and establishing a deep relationship and understanding of culture and working practices will separate the winners.
MICHAEL CHAILLE Global Head of Wealth Alpha FMC
WEALTHBRIEFING FOREWORD
This 12th edition of WealthBriefing’s Technology & Operations Trends in Wealth Management report, produced with Alpha FMC as our research Partner, captures a comprehensive snapshot of the industry’s significant progress as it evolves and adopts digital and new technologies.
Wealth management firms and institutions are leveraging technology to boost efficiencies, deliver personalised solutions and enhance the overall customer experience. As a result, the gap between businesses, regions and investment strategies is narrowing, highlighting the continued digital transformation across the industry.
This year’s study is truly global in scope, featuring insights from across Africa, Asia-Pacific, North America, Latin America, Europe and the Middle East. We gathered perspectives from C-suite executives and technology experts in private banks, family offices and fund managers, creating one of the most current and insightful reports in the wealth management industry.
The pace of investment and innovation in recent years is remarkable, and our report closely tracks the widespread adoption of digital technologies within operations. There is a clear shift toward customer-centric, technology-enabled business models, driven by data, digital tools, and automation. This progress varies depending on the size and structure of the firms, the nature of their client bases, and the regulatory environment they operate in. Firms also face evolving client expectations and increasing competition, all while navigating geopolitical and economic uncertainties. This has sharpened their focus on digital roadmaps, which are having a profound impact on operations and client experiences.
Our approach for this report was broad and data-driven, combining an empirical approach with expert interviews, industry insights and analysis. We gathered different viewpoints from global regions through our online survey, which provided the back story for our conversations and analysis. We also spoke to leaders and experts to understand the strategies employed and to gather real-world examples of innovation. What we found was an industry that is fully engaged along a digital journey, albeit at different stages, depending on size and client demographics. Some have advanced significantly, while others are still fine-tuning their approach. Staying ahead of the curve remains crucial to optimising the client experience.
So while investment decisions have been taken, and implementation is now underway, staying ahead of the curve is still as vital as fine-tuning every aspect of the business to ensure an optimal client journey and experience.
The current environment is complex. Although digital transformation is accelerating, it is happening at different speeds. The rest of the industry is catching up with the early adopters and learning from their use cases and best practices. Many firms are already seeing the benefits of their investments, such as improved operational efficiency and enhanced client servicing. In addition, there is a higher degree of understanding around AI-driven algorithms, machine learning, and big data analytics that redefine the value delivered to clients.
The digital journey is not linear, but more of a continuum, with firms and institutions mapping their way at their own pace towards the same destination - maximising the value technology brings to both operations and the client experience without compromising service quality.
This 12th study is a benchmark that shows an industry in progress, still learning, developing and refining its approach to digital transformation. Firms continue to deal with uncertainties, particularly around risk and regulatory compliance. Data remains a critical enabler, driving the degree and sophistication of infrastructure and technology required to enhance the client experience, increase productivity and comply with regulations. The questions facing the industry still revolve around how to optimise the business, technology and people strategies to deliver the best digital customer experiences while growing assets under management.
The possibilities presented by this fast-evolving technological landscape have never been more exciting. The wealth management industry is poised for continued transformation, and we look forward to observing and tracking these developments in the years to come.
THEODORA VINEY Head of Research - ClearView Financial Media, Publisher of WealthBriefing, WealthBriefingAsia and Family Wealth Report
CONTRIBUTORS
WealthBriefing and Alpha FMC extend their warmest thanks to all the professionals who took the time to participate in our global survey, as well as to the following experts who kindly took the time to speak to us and contributed their thoughts on its findings and shared insights and research by their consultancies:
WILLIAM GENOVESE
Chief Information Officer Intellect Global/Boss
WILLIAM HABBERFIELD
Chief Operating Officer
LGT Wealth Management UK
MICHAEL HELLER
Head of Financial Crime
Dow Jones Risk And Compliance
ERIN HULSE
Founder & CEO
Deviate Consulting
PETER MCCREE
Chief Operating Officer Handelsbanken Wealth & Asset Management
MATTHEW MILLARD-BEER
CEO
Itriom
COLIN MURPHY
Chief Commercial Officer
BNY Mellon | Pershing
TANIA NEILD Owner & CTO Infograte
JONATHAN THEBERGE Director Of Wealth Services Keybank
TOM WOODERS
Regional Head, UK & Ireland
Allfunds
EXECUTIVE SUMMARY
Our 12th global report shows that the wealth management industry is undergoing significant transformation as it adopts digital and new technologies to deliver efficiencies while increasingly providing personalised solutions and enhanced overall customer experience. At different stages on their digital roadmaps, firms and institutions continue to progress at pace, narrowing gaps across businesses, regions and investment decisions.
1. Digitalisation: Following the substantial investment and progress seen in the last two years, respondents gave their firms an average score of 5.3 out of 7. This is a marked increase from the 4.7 seen in 2023, making it the highest average score since 2021. Overall, this is in line with market anticipations of progress at pace. All respondents reported that their firms are showing good and acceptable progress against expectations (100% scores above 4) while 7 per cent felt able to give their firm a full rating of 7 for digitisation.
2. Regional Differences: The gap in digitalisation between regions also continues to close. This year, we extended the study to include Africa in addition to MENA and Latin America. The highest scores are still registered in North America, Europe, and the United Kingdom. MENA, Latin America and Africa show significant progress, albeit dependent on their infrastructure and regional challenges.
3. Automation: Likewise, the level of automation has risen consistently over the years, with firms and institutions reporting various stages of implementation, depending on their size and structure. Industry leaders set the pace, with both core services and outsourced non-core services integrated to streamline processes such as portfolio management, client onboarding, and reporting. On average, firms and institutions are reporting that 70 per cent are gaining momentum on maximising automation in portfolio construction and rebalancing, well ahead of the 65 per cent scored the previous year.
4. Data continues to underscore the effectiveness and success of the automation of processes and digitisation of the client journey. There are still challenges related to data, from data input points to timeliness and accessibility. However, most firms are progressing along that journey, with respondents giving an average score of 73.5 per cent for reliability, timeliness, and accessibility - an increase on
the 65 per cent average score from last year. The best-rated firms scored 93 per cent, against the lowest score of 69.5 per cent, highlighting the gaps still existing for businesses.
5. Client Custodial Data is crucial for firms set to optimise service delivery and enhance client relationships. By leveraging this data effectively, firms can make better-informed investment decisions, monitor portfolio performance, and ensure accurate reporting for regulatory and tax compliance. With an average score of 5 and the lowest score of just under 5, the findings reflect this strategic importance. This continues the ongoing strong trend for a data-driven and client-centric approach that was so prevalent last year.
6. Risk for wealth management firms is increasingly complex and multifaceted, driven by a rapidly evolving landscape that includes integrations of legacy systems with advanced technology and applications; business resilience in the light of recent global IT outages, cybersecurity and DDOS; compliance and regulatory changes, market and geopolitical volatility, and shifting client expectations. Additionally, managing the everyday operational risks is critical to maintaining trust and safeguarding client assets. The expected score was high; in fact, the overall average score registered was 5.7 - the lowest score at 5.2 for asset managers, while the highest score was just under 7 for fund managers.
7. Outsourced Services are becoming increasingly common across businesses, as firms seek to enhance efficiency, reduce costs, and access the latest specialised expertise. While such services are attractive to fund managers (a score of 6.5), Multi-family Offices (5.4) and wealth managers (5), the scores were much lower for Single-family Offices (4.3), private banks (4) and registered investment advisors (3), who all scored lower than the overall average score of 4.7.
8. Tech Budget: These have not decreased in recent years. As the industry forges ahead at pace, with many having already invested, tech budgets reflect that drive, with only 13.7 per cent saying the budget will remain the same, and 2 per cent saying it will decrease. This score continues to reflect the ongoing importance of technology as an enabler and a driver for automation, efficiencies and innovation in future offers.
9. Environmental, Social and Governance (ESG): Regulations and disclosure requirements on ESG are here to stay, their impact affecting the operations of asset and wealth management firms and the companies behind the assets they manage. Progress was highly variable. With 17.7 per cent of respondents reporting that they have a leading ESG investment process in place, and 31.4 per cent reporting that ESG is fully embedded but the process could be improved, it is only 11.6 per cent that declared ESG is not part of their investment process and there aren’t plans for it to be included.
10. Advanced Technology Driving Transformation: Technology is transforming wealth management by enhancing client engagement, improving operational efficiency, strengthening risk management, and enabling data-driven decision-making. Firms that effectively integrate technology into their operations are better positioned to thrive in an increasingly digital and competitive landscape. On average, respondents agreed. With an average score of 4.1, where the highest score was a 7 and the lowest score a 1, responses demonstrate their firms’ appetite for the adoption of advanced new technologies in their operations.
11. Organisational Impact: Technology is also having a profound impact on career progression with an increasing demand for new skills. Respondents are very much aware that their careers and future roles may change in the coming years. With most scores registered at 5 (21.5 per cent) and above on a Likert Scale of 7, from across a global sample which included 55.8 per cent aged between 30-44 and 30.8 per cent between 45- 60 years of age, these are rising areas of concern which must not be ignored.
12. Age: The ageing demographic suggests that a sizeable group of skilled talent will be retiring in the next few years, triggering the need to attract a newer, more diverse and technically fluent younger cohort.
13. Balancing the Mix: Adopting the right mix of modern technology and digital innovation is becoming central to reinventing the client experience, enabling growth, reducing costs and effectively managing risks along the journey. The focus is on balancing the business and tech agenda while optimising operations, human interaction and value for the client base, albeit dependent on the business structure, size and location.
DIGITISATION – SHAPING THE NEXT PHASE OF EVOLUTION IN THE WEALTH MANAGEMENT INDUSTRY
The pace of progress in digitisation over the last few years suggests that the industry - which has progressed steadily, albeit at different intensities depending on budget and size – is now evolving into the next phase. Most firms and institutions have by now invested in core platforms and non-core essential technology. They have fundamentally transformed how solutions are processed, delivered and accessed. Their focus is shifting to the overall client experience.
As the WealthBriefing Tech and Ops Report, now in its 12th edition, continues to monitor the progress of digital adoption across technology and operations, we see signs of a significant transformation that has taken place, with increased use of digital tools and automated processes, changing client expectations, regulatory pressures, and increased competition. This is taking place against a backdrop of intensifying geopolitical and economic instability, with progress varying across regions, depending on the size and structure of the firms and institutions and the nature of their client bases.
Adopting the right mix of modern technology and digital innovation is becoming central to reinventing client experience, enabling growth, reducing costs and effectively managing risks. Indeed, as evident even from our discussions with industry leaders and experts for this study, the full impact of this next
EXHIBIT 1
phase will likely continue to unfold over the coming years as firms further integrate digital capabilities into their operations and client solutions.
This year, with an average score of 5.3 out of 7, against last year’s score of 4.7, the progress has reached a certain momentum of activity. This was following a slight slowing down immediately after the pandemic during which time the conversation was focussed on understanding the new technologies, revisiting strategies and looking for efficiencies in productivity. The emerging picture shows that the progress has continued at pace, even as it dealt with global volatility, planning activity and rising costs across the board.
Overall, just under 35 per cent of respondents felt able to give their firm the two top scores for digitisation, while every single respondent (scores above 4) reported that their firms are showing good and acceptable progress against expectations. This score was reflected across the businesses.
Regionally, this year we have added Africa and Asia Pacific, a key area driven by Singapore and Hong Kong. Across the regions we looked at, North America and Europe are still on their current trajectory, leading in their digital journey, with the United Kingdom and Asia Pacific close behind. Regions like Africa and
Level of digitisation achieved across the business during 2024
Latin America are still in the early stages while Asia-Pacific shows rapid growth, driven by digital strategies and fintech innovation.
What is clear is that this is a dynamic regional picture moulded by a mix of challenges and opportunities which are inherently shaped by regional differences in economic development, technological infrastructure, regulatory environments, and market maturity. Migration to the digital world is moving fast across the regions, driven by agility and investment in integrating digital systems. Market maturity is variable and can be viewed on a continuum that starts at digitisation of basic processes that address immediate needs for efficiency, client engagement, and regulatory compliance, such as CRM to more advanced digital initiatives such as digital onboarding, online account management and compliance automation.
Demand is high for mobile-first solutions by tech-savvy Millennial and Gen Z demographic cohorts, particularly in emerging regions where mobile device usage outstrips traditional banking infrastructure. Coupled with increased accessibility to technologically advanced outsourced solutions, this fully aligns with the global growing trends where clients are increasingly mobile and access financial services through mobile devices.
WIDESPREAD ADOPTION OF DIGITAL TOOLS
As one of the respondents commented, “We have observed significant advancements in the integration of new technologies across various operational areas within our institution. The incorporation of AI has streamlined many of our processes, enhancing efficiency and data management.”
Such a response is reasonable when considering the speed with which new software applications and technology are being released and adopted in non-core services. Our findings indicate that the majority of firms and institutions are well ahead in their digitisation strategies, plans and projects, and are working at pace, within the parameters of the regulatory constraints, and in line with expected returns on efficiency and productivity, and client requirements and anticipations.
The challenge remains to keep pace with technology while staying compliant with regulatory requirements. Adopting the right blend of new technologies, infrastructure, systems, automation, and digital innovation is increasingly crucial for transforming client experiences, driving growth, cutting costs, and effectively managing risks.
2 Pace of digitisation achieved across the businesses 2021 - 2024
THE DIVERSE ECOSYSTEM OF TECHNOLOGICAL SOLUTIONS
Currently, we’re seeing a diverse ecosystem of technological solutions, with firms at various stages of digitalisation based on their size, culture, and target clientele. Many are in the market for comprehensive, all-in-one platforms, with the primary focus on boosting efficiency, ramping up productivity, and trimming costs.
We commonly see two key considerations to investment in technology - high cost and lack of IT expertise. Some just do not know what is available. With tech moving so fast, it’s tempting to wait for the “next big thing” before investing. However, this approach can backfire. Putting off tech upgrades might save money in the short term, but it can leave the firm vulnerable and behind the curve. New solutions can seriously boost efficiency and improve how firms run. It’s crucial to keep the tech stack current and weave new tools into operations.
It’s not always easy to pull the trigger on new tech. But in the long run, falling behind technologically can hurt more than the initial investment pains. It’s about finding that sweet spot between caution and innovation. Doing so requires a methodical approach: stepping back, clarifying goals, and carefully crafting processes that match the desired operational scale and quality. By dedicating time and resources to thorough planning at the start, firms can sidestep the pitfall of hasty decisions.
Notwithstanding the focus on core technology, there’s a sense that we’re on the cusp of something bigger. Artificial Intelligence (AI) is poised to be a game-changer, not just in enhancing back-office operations, but in fundamentally reshaping how wealth managers interact with their clients. The real opportunity lies in leveraging AI to forge deeper, more personalised client relationships.
Beyond traditional financial metrics, we’re talking about systems that can analyse a client’s behaviour and investment preferences to anticipate their future needs, tailoring services with uncanny precision. The value-add here is in understanding each client’s unique relationship with money and their individual goals, then using that insight to provide truly personalised investment advice and product recommendations.
This shift greatly enhances a wealth manager’s relationship management toolbox to a bespoke service model, powered by AI. With clients’ expectations changing, it is increasingly important to understand the individual behind the portfolio. This evolution could redefine what it means to provide value in wealth management, creating stronger, more enduring client relationships in the process.
The firms that can successfully bridge this gap – combining operational efficiency with deeply personalised service – will likely emerge as the leaders in this new era of wealth management.
THE PACE OF AUTOMATION
“There’salotofmodernisationprogrammes goingonatthemoment,butwearenotallinthe sameplace.ThereasonIsaythatisIthinkweall haveautomationinplace…isitthemostefficient automationatthemoment?Probablynot.Dowe havemanualprocessesinplacetocapturesome of the inefficient architecture that’s there? Yes. Doeseverybodyelse?Yeah,ofcoursetheydo.”
What we see from the responses to our online survey, expert insights and our interviews with industry leaders is that the debate and pace on automation continue at different levels,
depending on the size of the institution or firm. Wealth management historically relied heavily on manual processes and generic investment strategies. In recent years we have seen this landscape shift towards automation and customisation, driven by new technologies, the ease of integration and shifting client demands. Automation is now considered necessary across all cohorts, driving investment to deliver outcomes seen in streamlined processes and enhanced decision-making.
This year on average we are seeing a higher level of progress on automation in portfolio construction and rebalancing, showing an increase of almost 5 per cent. The highest marked increases are from fund managers, asset managers and wealth managers, while private banks and Multi-family Offices have slowed down slightly. This is aligned with plans which are now coming to fruition in many institutions that are investing in automation, especially around core processes. Across the cohorts, we expect to continue to see increased momentum, relative to the firm, its size, its client base and its demographic reach.
EXHIBIT 4
Firms/Institutions Likert Scale Scores across types, with the
score being 7. Base Year 2024.
KEY TRENDS SHAPING THE TRANSFORMATION LANDSCAPE
We are seeing wealth management undergoing significant transformation, driven by several emerging trends and innovative approaches. In particular, we are seeing the following trends reshaping the landscape:
Digital Transformation: The rise of digital platforms and tools is revolutionising wealth management. Robo-advisors, for instance, use algorithms to offer automated investment advice, making wealth management more accessible and cost-effective for a broader audience. Many clients are taking advantage of these algorithms for real-time advice and information. More examples of technology being adopted by wealth management firms are client portals for easy access to client information. The portals cater to the user by providing customisable information such as different charts, graphs, and reports to meet client needs.
Personalisation: Clients increasingly demand personalised investment strategies, tailored to their specific financial goals, risk tolerance, and values. Wealth managers are leveraging data analytics and AI to deliver customised solutions efficiently. However, some clients are averse to exposing their information to further analytics and AI. In this case, firms are adjusting their client service model to meet the growing needs and expectations of client personalisation.
Collaboration and Partnerships: Traditional wealth management firms are partnering with fintech startups and tech companies to enhance service delivery, improve operational efficiency, and offer innovative solutions that meet evolving client needs. This area of growth is the largest in the past few years. Tech companies are popping up everywhere with specific solutions to challenges that wealth management firms have been facing for years. This innovation from fintech startups has truly pushed the boundaries of collaboration and partnerships between firms, resulting in a huge win for clients.
DATA INTEGRITY - THE STRUGGLE FOR DATA QUALITY
“Therearetwocomponentstodata…there’s internal data and there’s external data… theprocessofgatheringitandsynthesising itisstillcomplex.”
Data is central to technology and operations and is characterised by both opportunity and challenges. Firms have invested heavily in cleaning and maintaining the quality of their data, strategically leveraging it to gain deeper insights into client behaviours, optimise portfolio strategies and decision-making, enable efficiencies and improve risk management. Firms and service providers have access to vast amounts of information as a result of big data. In turn, this enables more personalised client services, predictive analytics, and enhanced decision-making.
However, this abundance of data also presents significant challenges. Many firms still struggle with data integration across legacy systems and new technology bought in as outsourced services. The growing emphasis on data privacy and maintaining robust data governance practices with stringent regulatory requirements adds yet another layer of complexity, requiring firms to implement sophisticated data protection and risk measures. Moreover, as firms seek to harness the full potential of big data, data analytics, Large Language Models (LLM) and AI, there is a pressing need for specialist skills to navigate the
technical and strategic aspects of data management in this evolving landscape.
On average, all cohorts across businesses reported that in their opinion, their firm’s data was reliable, timely and accessible. Fund managers, followed by Registered Investment Advisors (RIA) and Multi-family Offices scored highly while key stakeholders such as service providers, which also include consultants, and Single-family Offices were not far behind at a score of over 5 on a Likert scale base of 7.
The level of complexity of data management has never been higher and now more than ever, it is critical that data is consistent, reliable and accessible. In firms across businesses, data is accessed across many data points, with increasing interdependency from business functions, outsourced services, industry and productivity applications that share multiple relationships with that data.
When asked to rate the reliability, timeliness and accessibility of data at their organisation, all cohorts averaged several percentage points higher than last year at 73.5 per cent (see Exhibit 7). Fund managers and Multi-family Offices made significant progress to lead this year at 80 per cent and over. With the overall average coming in at just over 70 per cent, it reflects the ongoing challenges across businesses as they deal with legacy systems, various data input points, siloed databases, and multiple internal and external sources of information. As an industry
EXHIBIT 6
How would you rate your firm’s data for reliability, timeliness, and accessibility?
Firms/Institutions
scores across types, shown as percentages. Base Year 2024, comparison showing 2022, 2023, 2024.
expert commented, “Ideally we would have a solution where data was situated on one platform, was input once, was utilised once and then joined up rather than getting moved around to the different areas. This creates risk, with different data integrity challenges at every point.”
Service providers such as industry leaders Dow Jones Risk and Compliance are well aware of the complexities of data, considering it an area where there are lots of manual tasks and some of them can be automated. When discussing this with us they shared that “We’ve now leveraged our data technology and our data expertise building structures for data, and combined it with artificial intelligence to be able to surface insights, not only from structured or human-curated content but also our unstructured Factiva news content.”
THE CIA APPROACH TO KEEPING DATA SECURE
The CIA Framework (Confidentiality, Integrity, Availability) is a widely used information security model that can guide a firm’s efforts and policies aimed at keeping its data secure – a panacea in a time of cybersecurity and data breaches.
Based on three principles, it ensures that those entrusted with data security think deeply about how they overlap and can sometimes be in tension with one another, but can help in establishing priorities when implementing security policies.
Applied as a framework, it can help tech decision-makers frame focused questions as they plan to invest. Such as: does this tool/ application make our information more secure? Does this service help ensure the integrity of our data? Will strengthening our infrastructure make our data more timely and readily available to those who need it, when they need it?
Working as a triad, it helps to establish information security policies, forcing the decision-making to be taken on which of the three elements are the most important for specific sets of data and for the organisation as a whole.
The CIA triad is often depicted as a triangle, with each component interconnected. While these information security principles are essentially individual elements, they are also interdependent. For example, maintaining confidentiality may involve encryption (confidentiality) and access controls (availability). Ensuring data integrity may require monitoring and auditing (confidentiality) to detect unauthorised changes.
Finding the right balance among the CIA triad principles requires a holistic approach, considering an organisation’s unique circumstances, risk profile, and operational requirements.
Confidentiality: Only authorised users and processes should be able to access, utilise or modify data.
Integrity: Data should be maintained in a correct state and nobody should be able to improperly modify it, either accidentally or maliciously.
Availability: Authorised users and processes should be able to access data whenever they need to do so.
CAPITALISING ON ADVANCED DATA TOOLS
Data analytics is increasingly recognised as a cornerstone for informed decision-making in wealth management. Firms leveraging data and AI can gain deeper insights into client needs, market trends, and risk management. We have looked at examples of advanced data tools in practice:
One example is the reading of documents: In seconds, easily accessible tools can read invoices or bills to extract key data to facilitate the accounts payable process. Tools such as Bill offer features to help the extraction and approval process. Similarly, tools such as Arch and Canoe are leveraging AI to process alternative investment documents. They can not only log in and capture the alternative asset documents but can also determine the nature and format of the document, be it capital call, estimate or actual statement. The tool can then read the document, identify and then pull out the investing entity, fund, date, and value or called amount. They are specifically “learning” alternative asset documents, such that their accuracy and reliability are higher than a general natural language model.
Another example uses back-office portfolio management data to create presentations, podcasts and reports that are specific to each client.
More examples include how AI is facilitating search functionality across documents. While traditional search relies on sourcing data based on keywords that have been typed into a search bar by the user, an AI search can “understand” a question or prompt set by the user. Users can ask questions such as “When does this trust pay out” or “When does this contract expire?” The AI search can not only find the document or data but also “read” the document to “interpret” or summarise the answer.
Within wealth management, one particularly useful application is leveraging AI to help gather information when filling out forms for the Corporate Transparency Act (CTA): the information required for the Act’s forms is often nested within a multitude of different documents. In the past, extracting such information would require sifting through each document by hand, but with Natural Language Models (a flavour of AI), the user can upload all the relevant documents, then input the questions from the CTA form and prompt the model to extract answers based on the provided documents. The AI search is robust enough in that it can search across a variety of different documents and provide both data and analysis.
LEVERAGING CLIENT CUSTODIAL DATA TO OPTIMISE SERVICE DELIVERY AND ENHANCE CLIENT RELATIONSHIPS
Client custodial data is crucial for firms to optimise service delivery and enhance client relationships. By leveraging this data effectively, firms can make better-informed investment decisions, monitor portfolio performance, and ensure accurate reporting for regulatory and tax compliance.
Firms benefit from a comprehensive view of clients’ financial behaviours, preferences and needs, allowing them to develop more personalised and proactive wealth management strategies. This results in tailored advice, more effective risk management, and efficient rebalancing of portfolio allocations and asset distributions, ultimately driving greater client satisfaction and loyalty. As competition intensifies, the strategic use of custodial data ultimately drives market share, customer loyalty and success.
With an average score of 5 across the firms and institutions surveyed and the lowest score at just under 5, the findings reflect the strategic importance placed on the leveraging of client custodial data. This continues the ongoing strong trend for a data-driven and client-centric approach that was so prevalent last year. Leading the strong scores were fund managers, Single-family Offices, asset managers, Multi-family Offices and service providers.
EXHIBIT 8
How well do firms leverage client custodial data?
Firms/Institutions Likert Scale Scores across types, with the highest score being 7. Base Year 2024.
MANAGING OVERALL OPERATIONAL RISK
The recent global IT outage caused by a Microsoft Windows update must surely remind the banking and wealth management sector of the need to keep IT systems resilient and reliable.1
Managing operational daily risk is a core operation that directly impacts firms’ and institutions’ ability to maintain trust, ensure regulatory compliance, and safeguard client assets. Focussing on the stability, compliance, and integrity of their operations, technology has emerged as a solution and an enabler, providing a critical layer of protection against a wide range of operational risks, ensuring smoother and more secure daily operations.
The expected score was high, and in fact, the overall average score registered was 5.7, and the lowest score at 5.2 for asset managers, while the highest score was just under 7 for fund
managers. Given the complex and highly regulated nature of the industry, responses show that firms are adopting robust risk management frameworks to identify, assess, and mitigate potential risks across all operations. This includes everything from data security and technology risks to compliance with evolving regulations and managing human error.
Looking at the approach and readiness to manage cybersecurity, the scores were similar for managing the overall risk, with an average score of 5.4, the highest score of 6.3 for private banks and the lowest score of 4.5 for Single-family Offices. Cyber threats are becoming increasingly sophisticated. Recognising it as a critical component of protecting sensitive client data and maintaining trust, firms and institutions are investing heavily in advanced security technologies and adopting comprehensive cybersecurity frameworks to safeguard their operations.
EXHIBIT 9
How would you describe the institution’s approach to managing overall operational risk?
Firms/Institutions Likert Scale Scores across types, with the highest score being 7. Base Year 2024
EXHIBIT 10
How would you describe the institution’s approach and readiness to manage cybersecurity?
Firms/Institutions Likert Scale Scores across types, with the highest score being 7. Base Year 2024
OUTSOURCED SERVICES
Outsourced services are becoming increasingly common across businesses, as firms seek to enhance efficiency, reduce costs, and access the latest specialised expertise. This year we asked our online survey respondents about their firms’ approach to outsourcing non-core processes and applications. While such services are attractive to fund managers (6.5), Multi-family Offices (5.4) and wealth managers (5), the scores were much lower for Single-family Offices (4.3), private banks (4) and registered investment advisors (3), who all scored lower than the overall average score of 4.7.
Conversations with industry experts and service providers reveal a consensus that outsourcing non-core services to specialists is accepted as a way to tap into a strong competitive edge. When these outsourced services do not impact the firm’s core operations or service quality, they enable firms to enhance their effectiveness, efficiency, and productivity. They also admit that as a solution it is not the right approach for all. However, firms that integrate outsourced services in their operations are benefitting from the ability to leverage skills, expertise, new technologies and tested best-in-class applications that are emerging within the industry from agile, innovative service providers.
EXHIBIT 11
How would you describe the institution’s approach to outsourcing non-core processes and applications?
Firms/Institutions Likert Scale Scores across types, with the highest score being 7. Base Year 2024
BROADENING TECHNOLOGY BUDGETS
EXHIBIT 12
Technology budget change 2024 - 2026
Firms/Institutions
Technology budgets have not decreased in recent years. As a respondent explained, “Technology is now a leading cost, and that will continue to escalate, both from a hardware and software standpoint, including the cost of security and continued integration of AI.”
As the industry makes its way along to the next phase of digital evolution, tech budgets reflect that drive, with only 13.7 per cent saying the budget will remain the same, and only 2 per cent saying it will decrease. Indications from our conversations with industry experts are that the low scores where budgets will remain stable or decrease moderately reflect areas where budgets have either been high in past years and are now beginning to stabilise or where businesses are taking stock to refocus budgets in the coming years.
Industry experts agreed with the picture, confirming that technology budgets are projected to increase significantly over the next three years. This increase will be driven by the necessity to stay competitive in a rapidly evolving market. As another respondent added, “These investments are essential to support our strategic goals and to harness the benefits of emerging technologies.”
These viewpoints are directly aligned with forecasts on tech spend by Gartner2, who said that 2024 will be the year when organisations invest in planning for how to use GenAI, however, IT spending will be driven by more traditional forces, such as
profitability and labour. Furthermore, they forecasted that spending on IT services is expected to grow 8.7% in 2024, reaching $1.5 trillion. This is largely due to enterprises investing in organisational efficiency and optimisation projects.
As a business leader commented, “Automation with AI algorithms is in full swing and so budgets are being allocated for smoother transitions into emerging technologies.”
Another firm said, “We have invested heavily in tech since our creation so a moderate increase in budget for us is based on expansion of our already considerable tech infrastructure.”
Overall, as seen in previous reports, there is a clear emphasis on technology being geared towards productivity, efficiency and growth. Investment in technology is not constrained by region, location or size. Furthermore, the balance between using technology to enhance the client experience and improve advisor productivity is being given almost equal weighting in the argument for budget spend on technological change.
When asked about the type of technology firms are investing in, respondents presented a mixed picture – see Exhibits 30 to 42 in the Appendix for a breakdown of the technology by businesses. Across the regions and businesses, client-facing technology, such as portals, websites or mobile apps ranked the highest at 53.9 per cent. This was followed by Client Relationship Management systems (CRM) at 50 per cent, Onboarding/Client Lifecycle Management (CLM) systems at 49 per cent and Data Platform/Warehousing at 46.2 per cent. Investment/portfolio management systems came in at 44.3 per cent, order and execution management platforms at 42.3 per cent and core banking systems or platforms at 25 per cent.
Other technologies taking a share of the investment budget include transaction monitoring technologies, consolidated family entity accounting systems, renewables and waste management applications, and new general ledger solution modules in Enterprise Resource Planning (ERP) financial systems. As a respondent commented, “We already have much of the infrastructure in place, and prioritising one (technology) over the other is not necessarily a reflection of our business requirements.”
When asked about the impact of the technologies to enable them to meet the goals of their business strategy (see Exhibit 14), the technology considered as the most enhancing for the cohort responding to the online survey was the investment/ portfolio management systems at 61.5 per cent, followed by the data platform/warehousing architecture at 44.2 per cent and the onboarding/CLM solutions at 38.5 per cent. The order and execution management platform and the core banking system/platform scored near identical results, at 30.7 per cent and 30.8 per cent respectively.
EXHIBIT 13
Amalgamated view across businesses: in which of the following technologies is your business prioritising investment within the next 12 months.
CLIENT FACING TECH (EG. PORTAL/ WEBSITE/APP)
Amalgamated scores for Firms/Institutions across types, shown as percentages. The top three scores (1 – 3) were included in the calculations. Base Year 2024
IS THERE A REGIONAL DIFFERENCE TO THE TECHNOLOGY INVESTED?
In our conversations with industry leaders and technology experts, we heard that investment decisions on technology are influenced by a variety of factors, including market maturity, regulatory environments, client expectations and cultural attitudes. The structure of the firm is also a strong element in the decision-making, as technology infrastructure across regions is oftentimes centralised, with limited space or budgets for further investment by the regions or individual countries.
Certain regions are also considered early adopters and have been investing consistently over the years. Their approach is different to those regions considered as emerging or nascent players in their investment and adoption. Industry leaders based in North America, Europe and Asia Pacific focus on innovation and the client experience, robo-advisory services and cybersecurity.
In Europe, there is a strong regulatory-driven element, as firms often adopt technology to comply with stringent regulations. Such investments are in data management systems, compliance technologies and client-facing tools. There is also a strong focus on sustainability and ESG, with the investment directed towards the required tools for compliance assessment and reporting. Similarly, we have seen a significant push for the adoption of fintech solutions in the United Kingdom and Switzerland. Other European countries could be more conservative in their approach.
As already discussed in the digitisation section, Asia Pacific is leapfrogging in technology adoption, with a focus on mobilefirst and a growing wealth and demand for technology-based solutions among the younger, tech-savvy clients.
The MENA region is moving at pace, increasing its investment in technology, but is often more focussed on enhancing the client experience, especially for the HNWIs, rather than investing in mass-market solutions such as robo-advisory platforms. We expect to see more fintech ecosystems emerging from this region, although it is still at a nascent stage compared to more mature regions such as North America and Europe.
Latin America is another emerging market for wealth management technology, with a growing number of fintech start-ups looking to address gaps in traditional financial services. There is however a lag in terms of widespread adoption of technology in wealth management.
Africa is a nascent but growing market, and technology adoption is slower compared to other regions. However, there is a growing interest both in technology adoption and in leveraging it to improve financial inclusion. Similar to other emerging markets, while mobile banking and payment solutions are key areas of the technology investment, wealth management solutions are often integrated into these platforms.
Across all regions, the regulatory environment has an immense impact on which technology is invested in, and in turn, it could also slow down its adoption.
EXHIBIT 14
How well do each of the following technologies enable you to meet the goals of your business strategy?
INVESTMENT PORTFOLIO MANAGEMENT
DATA PLATFORM/ WAREHOUSING
ORDER AND EXECUTION MANAGEMENT PLATFORM
ONBOARDING SOLUTION/CLM
CORE BANKING SYSTEM/PLATFORM
Amalgamated scores for Firms/Institutions across types, shown as percentages. Base Year 2024
ESG - INCREASING INTEGRATION IN INVESTMENT PROCESSES
Regulations and disclosure requirements on Environmental, Social and Corporate Governance (ESG) are here to stay, their impact affecting the operations of asset and wealth management firms and the companies behind the assets they manage.
Looking at the state of ESG integration into firms’ investment processes, the trend this year is similar to that seen in 2022 and 2023, where progress was highly variable. With 17.7 per cent of respondents reporting that they have a leading ESG investment process in place and 31.4 per cent reporting that ESG is fully embedded but the process could be improved, it is only 11.7 per cent that declared ESG is not part of their investment process and there aren’t plans for it to be included.
Regionally, the United Kingdom, North America and Switzerland are still setting the pace for ESG integration, highlighting gaps within other regions. Without any doubt, this is a global requirement and all regions need to refocus their efforts to improve their progress on ESG integration.
Building a sustainable business is about making a tangible difference and ESG is increasingly seen as an area for innovation. ESG can also be a powerful differentiator as investors
EXHIBIT 15
State of ESG integration into firm's investment processes
seek to align their investments with sustainability and responsible business practices.
As a respondent commented, “ESG for us is an overarching policy since 2014. I demand in my investments …the understanding and the realistic approach to incorporating the ESG data to reach… measurable data. Furthermore, I monitor the transition and demand constant dives into the Operational Due Diligence of the portfolio companies.” Others have reported that they are B Corp3 certified, or that they are fully compliant with regional ESG reporting requirements.
IMPACT ON ASSET CLASSES
We asked our respondents to indicate the asset classes they are offering to clients. The spread includes equities, fixed income, private equity, cash or money at the high end, and cryptocurrencies and digital assets at the lower end of the scale.
The industry is feeling the effect of the increased volatility in economies which would impact the asset class mix or investment strategy, with scores mostly registered at the high end - 4 (16 per cent); 5 (25 per cent) and 6 (7 per cent).
EXHIBIT 16
There is an increased volatility in economies in the market. To what degree can you see this impacting a change in the asset class mix or investment strategy.
TO SEE HOW DEMAND EVOLVES BEFORE INCORPORATING IT PLANS ARE IN MOTION TO INCORPORATE ESG NOT PART
Firms/Institutions scores as percentages of the total number of respondents. Not all respondents answered this question. Base Year 2024
LEVERAGING TECHNOLOGY TO STAY RELEVANT
FOCUS ON SUSTAINABLE AND IMPACT INVESTING
We operate in the family office space. According to recent Schroders’ research4, 54% of wealth inheritors do not intend to use their parents’ advisors after getting the inheritance. This is not surprising as wealth managers typically focus on servicing the principals of the family. Wealth advisors need to engage and review their proposition to appeal to Millennial and Gen Z clients ahead of the great wealth transfer. This could mean a focus on sustainable and impact investing.
To stay competitive, family offices are leveraging technology to offer a higher level of service. Most reporting or client communications platforms now offer apps and dashboards, where a family member or the family office team can customise and drill into the details or simply pick up PDFs. Previously the office would spend time gathering information and extracting reports. Obviously, self-service creates efficiency. But even if the family does not want that access, the information is far easier for the office to pull together.
Creating a frictionless experience for the family, the office can leverage technology to pre-fill documents, send documents for electronic signature, or engage face-to-face on a Teams or Zoom call.
Technology is enabling family offices to be nimble and faster when servicing their clients: family office advisors can surface data more quickly and efficiently using AI-powered search tools. AI is already showing many effective use cases allowing the office to be smarter and faster. For example, AI powers many of the alternative data management tools. These systems can read investment statements, commentary or capital call notices, such that they can kick off approval workflows or update performance reports. AI tools enable the office to quickly reference key legal clauses in a trust document or incorporation paperwork.
A MOBILE-FIRST GENERATION
In emerging global trend embracing the benefits of digitalisation is visible with the younger generations who consume information in a wider variety of ways: instead of opening an email with a PDF attachment, millennials and GenZ are more likely to pull up an app, podcast, or video.
These younger generations are mobile-first and prefer to consume information on the go, via their smartphones or mobile devices, rather than at a desktop computer.
They prefer voice and text messages over email, video over PDF, and podcast over webinar. Generational shifts in communication style require family offices to offer technology conducive to this style.
THE REAL IMPACT OF TECHNOLOGY ON WEALTH MANAGEMENT
The real impact of technology on wealth management in recent years is profound, reshaping the industry in its operations, its solutions and asset classes. Undoubtedly, we are seeing transformational changes across business functions, core and noncore processes and client servicing. From our conversations with industry experts, we are piecing together a global picture that is steadily approaching a new phase in its use of digital and technology.
In last year’s report, the focus was on AI and Large Language Models, which were making waves worldwide. A year on, many are already ubiquitous in their utilisation in and outside the industry as tools for search, improved productivity and reporting. Strategically, we are seeing firms studying early adopters that have put together use cases to see how their operations can be improved through solutions powered by generative AI and machine learning. Nimble, agile newcomers are providing large-scale data-based core and non-core solutions that would not be practical for most firms to invest in as a self-build but are within scale and budget as outsourced services.
Cloud computing is also transforming how firms operate, interact with clients, and manage data. Delivering cost efficiencies through reduced IT costs and access to subscriptionbased models; scalability, flexibility and improved security; compliance and accessibility, among other benefits, means that
EXHIBIT 19
firms leveraging cloud technology are more competitive and better positioned to weather the winds of change and the evolving demands of the market and their clients.
From the ability to scale operations efficiently and flexibly, increasing geographical reach and global collaborations and adapting to client needs without significant investment in physical infrastructure, to flexible resource allocation and access to improved client portals, adjusting power and storage utilisation based on real-time needs - firms are lowering costs and improving operational efficiencies. They are also leapfrogging competitors by enhancing their technical capabilities as they harness the power of advanced centralised secure online environments for data management and advanced analytics that leverage AI and machine learning capabilities. There is also the added benefit of compliance with standards - as cloud providers increasingly comply with international regulatory standards - and a resilient infrastructure where data is backed up and accessible, allowing firms to quickly recover from disruptions and maintain service levels.
It is a fair conclusion to reach that technology is transforming wealth management by enhancing client engagement, improving operational efficiency, strengthening risk management, and enabling data-driven decision-making. Firms that effectively integrate technology into their operations are better positioned to thrive in an increasingly digital and competitive landscape.
How would you describe the institution’s approach to the use of AI, big data, blockchain and other disruptive new technologies?
Firms/Institutions Likert Scale Scores across types, with the highest score being 7. Base Year 2024
However, there is always the challenge of balancing operational efficiencies and best practices against security, risk, regulations and compliance. As a leading industry player said, “I’m seeing the (digital and tech) roadmap, and I know there are some players and providers who are just doing absolutely amazing things, but then it also does still raise, at the moment at least, a lot of questions, especially on risk and compliance…How much are you prepared to be comfortable with to pass custodial data to be anonymised, utilised and mixed on an external platform?”
Our respondents on average agreed. With an average score of 4.1 on a Likert scale of 7, where the highest score was a 7 and the lowest score a 1, it demonstrates the full scale of the impact technology is having on the industry. The challenge for each firm and institution is still to determine how, where and when to invest in and apply technology, digitalisation and advanced technologies such as AI and data models to optimise their potential, improve specific functions, achieve efficiencies and deliver superior service to their clients.
ORGANISATIONAL IMPACT
We were also interested in understanding the impact of technology on career progression and the increasing demand for new skills. Respondents are very much aware that their careers and future roles may change in the coming years. With most scores registered at 5 (21.5 per cent) and above on a Likert Scale of 7, from across a global sample which included 56 per cent of the respondents aged between 30-44 years of age and 31 per cent between 45-60 years of age, these are rising areas of concern which must not be ignored.
Being able to transition into new roles requires an HR strategy to prepare them for their future careers; training and working with upcoming and existing talent to ensure they have the necessary skills, mindset and support to succeed.
Furthermore, the ageing demographic suggests that a sizeable group of skilled talent will retire in the next few years, triggering the need to attract a newer, more diverse and technically fluent younger cohort. Is this a looming talent crunch? Seen against the rising cost of staff, the cost of retaining key staff and the overall challenge of managing the culture shift, this is yet another strategic challenge that directly impacts operational efficiency and sustainability.
EXHIBIT 21
Firms/Institutions scores as percentages of the total number of respondents. Base Year 2024
HOW TO WEATHER THE TECHNOLOGICAL WINDS
Technological Integration: Adopting recent technologies and ensuring high levels of cybersecurity are in place remain critical challenges. Embarking on a software search and implementation project is not an easy task. However, staying current with technology is important from several standpoints, including cybersecurity. New technologies have more advanced platforms and security applications to keep data safe. Creating knowledge transfer in the form of modern technology mitigates risk and allows teams to reach their full potential.
Talent Acquisition and Training: Firms need professionals who can navigate digital tools and understand both financial complexities and client preferences. When seeking this specific talent, it might seem hard to find the right fit, especially at the right price point. Investing in personnel is more important now than ever, and firms might have to spend more to find the right talent.
Compliance and Regulatory Hurdles: Keeping up with changing regulations requires significant resources and expertise. Compliance and regulations are changing as fast as technology is within our current landscape, which is why investing in technology and resources is key to meeting compliance standards. Firms need specialists who are proactive to stay on top of regulations to keep businesses flowing smoothly while avoiding legal repercussions.
CONCLUSION & REFERENCES
TRANSFORMATION IS INEVITABLE. THE CHALLENGE IS HOW TO STAY RELEVANT
With the industry as a whole evolving past the point where transformation is inevitable, the challenge facing C-Suite and business leaders is how to stay relevant and continue to provide value to clients. Firms can be relevant in a niche. They can be relevant simply because they have consolidated or converged faster. However, the challenges are simply another layer to the transformation taking place in the background.
Strategically, the discussion has been how to create the pathway that encompasses operations, digital, technology and talent within a client-centric, increasingly mobile-first, advice-oriented efficient business model. The industry has discussed the challenges, and while every firm has a different starting point on that journey, it appears that they are all travelling to the same destination. What makes it harder to picture at the moment is the individual agenda, the regional focus, the strategic partnerships and the dependencies.
AN AGREED SET OF EXPECTATIONS
It appears that the industry has agreed on a set of expectations around what the client and the advisors are coming to expect: the need to take what were distinct businesses with distinct product and service solutions and converge them into a continuum. As our leading industry player continued, “There appears to be a shift away from transactional advice to advisory goals-based and financial planning-oriented solutions. There is a tacit acknowledgement that clients don’t only just want to integrate specific products with that type of advice. Clients really want a one-stop shop, which is a utopia that could be decades away.”
KEEPING ABREAST OF TECHNOLOGY TRENDS AND PRACTICES
The digital richer mobile-first experience may be easier to provide through integrations with advanced outsourced solutions. The democratisation of the industry, with mergers and acquisitions of wealth management firms, together with consolidations among agile technically-advanced start-ups and established service providers, implies that the digital transformation can accelerate very quickly, allowing firms of all sizes to keep abreast with the right amount of technology adoption to create their digital customer experience.
Ultimately, technology is merely an enabler at a time of increased regulations and compliance, heightened security on systems, operations and data, and rapid advances in mobile-first technology, which are mirrored in clients’ digital expectations. Investment in technologies across businesses is still high, albeit at a different pace and with a different focus, depending on the nature of the business and the size/structure. Outsourcing is a strategic decision by many to leapfrog the technology gap in their structures, but it comes at a price – control over data vs the benefits of tapping into cutting-edge technologies and efficiencies. Trust is always key. Trust in the technology, trust in the infrastructure, trust in the governance and overall trust within the industry. The focus is on staying relevant and balancing the business and tech agenda while optimising operations, human interaction and value for the client base.
REFERENCES & SOURCES
1 WealthBriefing, 22 July 2024. OPINION OF THE WEEK: Wealth Sector Lessons From Global IT Outage.
2 Gartner, January 17, 2024. Gartner Forecasts Worldwide IT Spending to Grow 6.8% in 2024.
3 B Corp: Certified B Corporations (B Corp) are leaders in the global movement for an inclusive, equitable, and regenerative economy.
4 Schroders, November 2023. Your practical guide to intergenerational wealth transfer.
As part of this study, we carried out an online survey which was distributed globally through email invitations, social media and our website. In-depth interviews were conducted with C-suite leaders and technology experts from private banks, family offices, fund managers and industry service providers. The study took place between May and July 2024.
(Note: The figures reported in the text have been rounded up to the nearest percentage point, while the figures presented in the charts are displayed with two decimal points. This may result in slight differences between the values reported in the text and those shown in the charts and have been included to demonstrate the progress and slight differences which were reported this year in the survey.)
APPENDIX – DETAILED CHARTS
In the following charts, a score of 1 represents low value, while 7 represents high value.
EXHIBIT 22
How
EXHIBIT 23
How
Firms/Institutions scores as percentages of the total number of respondents. Base Year 2024 EXHIBIT 24 How
EXHIBIT 25
Firms/Institutions scores as percentages of the total number of respondents. Base Year 2024
APPENDIX – DETAILED CHARTS
EXHIBIT 26
How important is technology for the institution in driving efficiencies?
EXHIBIT 27
How important is technology for the institution in improving the client experience?
Firms/Institutions scores as percentages of the total number of respondents. Base Year 2024
EXHIBIT 28
How important is technology for the institution in meeting regulatory demands?
Firms/Institutions scores as percentages of the total number of respondents. Base Year 2024
EXHIBIT 29
How important is technology for the institution in enabling proposition change?
Firms/Institutions scores as percentages of the total number of respondents. Base Year 2024
Firms/Institutions scores as percentages of the total number of respondents. Base Year 2024
APPENDIX – DETAILED CHARTS
The following charts are based on the following question with answers taken from a 7-point Likert scale, where 1 is high and 7 is low: IN WHICH OF THE FOLLOWING TECHNOLOGIES IS YOUR BUSINESS PRIORITISING INVESTMENT WITHIN THE NEXT 12 MONTHS?
EXHIBIT 30
Prioritising investment in core banking system/platform.
EXHIBIT 31
Prioritising investment in investment/portfolio management systems.
Firms/Institutions scores as percentages of the total number of respondents. Base Year 2024
EXHIBIT
Prioritising
Firms/Institutions scores as percentages of the total number of respondents. Base Year 2024
EXHIBIT 33
Prioritising investment in onboarding solutions/ Client Lifecycle Management (CLM) systems.
Firms/Institutions scores as percentages of the total number of respondents. Base Year 2024
Firms/Institutions scores as percentages of the total number of respondents. Base Year 2024
APPENDIX – DETAILED CHARTS
EXHIBIT 34
Prioritising investment in client-facing tech e.g. portal/website/mobile apps.
EXHIBIT 35
Prioritising investment in CRM.
Firms/Institutions scores as percentages of the total number of respondents. Base Year 2024
EXHIBIT 36
Prioritising investment in data platform/ warehousing.
Firms/Institutions scores as percentages of the total number of respondents. Base Year 2024
Firms/Institutions scores as percentages of the total number of respondents. Base Year 2024
APPENDIX – DETAILED CHARTS
The next set of charts is based on the following question: HOW WELL DO EACH OF THE FOLLOWING TECHNOLOGIES ENABLE YOU TO MEET THE GOALS OF YOUR BUSINESS STRATEGY?
Firms/Institutions scores as
Firms/Institutions scores as percentages of the total number of respondents. Base Year 2024
APPENDIX – DETAILED CHARTS
41
EXHIBIT 42 Data platform/warehousing.
Firms/Institutions scores as percentages of the total number of respondents. Base Year 2024
Firms/Institutions scores as percentages of the total number of respondents. Base Year 2024